Responsible energy for life, living, and entrepreneurship

Responsible energy for life, living, and entrepreneurship

The activities of Turku Energia are based on responsible management and constant improvement of business operations and modes of action. The principles of responsible entrepreneurship, which have been approved by the company's Board, require that Turku Energia should recognise its social, economic, and environmental responsibility in its operations.

  • Social responsibility in Turku Energia comprises the fulfilment of expectations and the maintenance of confidence among the different interest groups.
  • Environmental responsibility is based on minimising the environmental impact of the operations, and the improvement of energy-efficiency.
  • Economic responsibility means profitable and fair business activities for the benefit of society and the company’s owner.

Within Turku Energia, corporate responsibility and its management cover all corporate and business operations throughout the value chain from the procurement of energy to its use. Monitoring of implementation of the principles of responsible corporate operations is carried out through the line organisation. In addition, we insist that our suppliers and partners observe Turku Energia’s principles of corporate responsibility. In our operations we observe good governance, legislation and regulations relating to environmental and occupational safety issues that affect our operations as well as commitments we have made.

The management team of Turku Energia monitors and, through its own operations, ensures the implementation of measures and programmes in accordance with the principles of corporate responsibility in regular management reviews. Corporate responsibility issues are permanently on the agenda for meetings of the Group’s management team and the management teams of operational units. In addition, the Group has separate programmes for environmental and occupational health matters. Internationally recommended measures related to responsibility (GRI, G3) are monitored and reported on annually.

Management system

The company’s management practices are based on the Balanced Score Card, BSC, which establishes company and unit-specific targets derived from the company's vision and strategy. The Group and units’ management teams monitor the attainment of objectives. Strategy days are held annually for the board of directors, the management team and the unit's management teams. The Group’s strategy and objectives are planned during the strategy days. The management system functions electronically through the company’s intranet.

Turku Energia uses a management system that was certified in 2004, and includes systems for quality, environment, and occupational safety (standards ISO 9001:2008, ISO 14 001:2004 and OHSAS 18 001:2007). The system was audited twice internally and twice externally. Some of the members of the staff of Turku Energia have been trained to conduct internal audits. The system also includes regular surveys by the management.

Environmental responsibility – more renewables and reduced emissions

Turku Energia’s objective is that half of the electricity and heat sold by the company should be generated from renewable energy sources by 2020.

It is important for Turku Energia to recognise the environmental impacts and risks of its operations and to work in accordance with the principles of sustainable development. For us, environmental responsibility means increasing renewable energy, reducing emissions, increasing energy efficiency and reducing our local environmental impact. Turku Energia tries to reduce the environmental impact of its own operations by concentrating holistically, not only on measures that affect energy procurement and generation, but also on measures which have a local effect.

The company also draws up a new environmental programme every three years. The company drew up its first environmental programme in 1998. The Group’s own staff, as well as its close stakeholder groups, participate in planning the programme through such tools as feedback questionnaires. At the beginning of 2015, a new environmental programme for 2015–2017 was published. The primary goals of the environmental programme are to increase the proportion of renewable energy, reduce emissions, promote energy efficiency and communications as well as reducing its local environmental impact.

Good personnel policies are key to success

The result of the work of Turku Energia is based on the top-notch skills of staff who enjoy their work, and on effective cooperation with the customers and other interest groups. Almost 40 per cent of the staff will take retirement within the next 10 years and new job openings are coming available sooner or later. Successful recruitment and smooth induction practices are our key success factors.

The objective of Turku Energia’s personnel policy is to develop our staff’s occupational well-being, motivation and skills. Our employment contracts are often long-term, and skills are appreciated. We deliberately try to increase internal mobility and job rotation among our staff. Turku Energy is working to develop managerial activities, because good management is known to have a direct bearing on the well-being of personnel.

During 2017, Turku Energia Group’s available staff resource averaged 286 person years. At the end of the year the Group employed a total of 286 people (2014: 308 people), of whom 260 (2014: 282) were on permanent employment contracts and 19 (2014: 26) were on fixed-term contracts. There were 16 (2014: 21) part-time employees. The average age of personnel at the end of 2017 was about 47 years (2014: 48 years 1 month). During the year, 7 (2014: 7) people were recruited to permanent positions. On the other hand, 10 (2014: 19) people’s permanent employment ended during the year; of these 8 (2014: 17) people to retirement.

Incentive system part of the management system

The Group’s incentive system covers all staff and supports the operating strategy and is a permanent part of the management system. Turku Energia is competitive in the recruitment of new employees of the future through its comprehensive bonus system and planned incentives. Workers, office staff and senior office staff have a collective agreement with their association Energiateollisuus ry. In addition, each group has its own local agreement.

The key elements of the group's bonus system are a basic pay based on the demands of the task, and personal bonuses. In addition, all personnel are covered by a merit pay system. Other critical factors related to overall compensation are good opportunities for development, flexible working time arrangements and permanent employment. A total of EUR 13.4 million was paid in salaries and merit pay in 2017 (2014: EUR 13.6 million). EUR 0.47 million was paid in merit pay in 2017 (2014: EUR 0.12).

Systematic skills development

Turku Energia invests systematically in developing skills. The development of personnel is guided with the help of a three-year management programme for skill resources. Skilled and motivated staff is a key requirement for achieving the company’s strategic objectives. Unit and functional specific skills targets are drawn up taking account of the skill areas that are essential for the success of the Group. Skills are built up systematically taking account of the perspective of the whole Group and the business areas. Needs for training and development are set in development discussions held annually between superiors and subordinates.

The number of training days per staff member was an average of 3.9 in 2017 (2014: 3.4 days/person). The main training themes are technical and commercial vocational training as well as training in occupational safety. The professional skills of staff have been further broadened through the use of apprenticeships. Systematic process are also being created to promote supervisory skills and the transfer of tacit knowledge. An average of EUR 1 423 per staff member was invested in personnel training (2014: EUR 1 434 per staff member).

As older employees’ retire over the next few years, Turku Energia’s skilled workforce will be expanded with many new talents. A challenge for the coming years is the recruitment of skilled employees and fostering their commitment, as well as the transfer of skills and knowledge to the new employees.

Equality in the workplace

Turku Energia’s occupational well-being strategy supports equality and uniformity of treatment in the workplace. The aim is to promote comprehensive equality and uniformity of treatment in the workplace and to prevent marginalisation. The management system used in the Group supports equality and uniformity of treatment within Turku Energia. The operational system also includes instructions for dealing with any possible harassment at work.

On the basis of the actions based on the equality plan, the situation regarding equality between men and women is at a good level overall. There are, however, gender related differences in jobs within the Group. They are primarily associated with traditional views regarding educational and professional factors that prevail in society. Almost without exception, those working in technical roles are men and women in customer service positions. However, within Turku Energia, one long term development target is the creation of opportunities to promote uniformity of treatment.

The Group’s joint coordination committee met four times during the year. There is a staff representative in both Turku Energia Oy’s management team and on the Board of Directors. Various campaigns also support the suggestion scheme.

Occupational well-being through support for hobbies and leisure activities

Staff voluntary participation in sport increases their ability to cope at work and to enjoy being there too. In addition to the support for permanent times and places for sport for staff, sport and culture vouchers were also made available in 2017. The employer pays half of the face value of sport and culture vouchers. Occupational well-being is also promoted by supporting hobbies and leisure activities, for example through events for all employees. Staff also have the possibility to eat in the staff restaurant located in the office building. An average of EUR 144 per staff member was spent on hobbies and leisure activities (2014: EUR 144 per staff member).

Occupational well-being through planned and long-term activities

The Group has an occupational well-being strategy which covers occupational health and safety matters. Turku Energia’s permanent target is zero accidents. In accordance with its occupational well-being strategy, the company’s operations are founded on high levels of skill, and the nature of the sector is such that operations require an extremely high level of safety. Turku Energia has established as a critical objective to ensure the occupational well-being of its staff through planned and long-term activities. Measures and goals for the promotion of occupational well-being are drafted annually and updated into the occupational well-being programme.

Turku Energia commissions regular staff surveys which are used to identify development needs, particularly in relation to senior management, management/supervision of work and compensation. At the end of 2017, a business areas specific, occupational well-being survey mapped the levels of satisfaction amount Turku Energia’s employees regarding working conditions, staff development, interactivity and motivation at work. The aim is to carry out this unit specific survey twice a year, and a staff survey concerning the whole company will be carried out every third year.

Turku Energia sources its occupational health services from Suomen Terveystalo Oy. An average of EUR 628 per staff member was spent on occupational health in 2017 (2014: EUR 864/person). The goal is to develop preventative activities and to support the working capacity of staff. In cooperation with the occupational health service, a model for coping at work has been developed for Turku Energia with the objective of promoting a culture of discussion within the company. The total number of sick days taken by staff was 12.3 days /person. The company actively uses partial sick-pay, alternative work and work trials to promote the return of staff from sick leave.

Development in occupational safety improving

There were 26 accidents in 2017. Of these, 8 required an absence from work of more than one day (2014: 4). The average length of sick leave resulting from accidents was 35,3 days which is almost the same as in the previous year. Development with respect to occupational accidents has been variable over the past few years.

Turku Energia promotes preventative occupational safety. Efforts are made to recognise potential dangerous situations and to prevent accidents from happening with the help of near-miss reports. Reports can be made by anyone who sees a situation that endangers occupational safety. There were 200 near-miss reports in 2017 (2014: 130). In addition, a system of reporting safety observations has been adopted to identify shortcomings that need to be corrected. A new notification programme was adopted during the year with the objective of further reducing the threshold for all staff to record suggestions and safety observations as well as deviations. A total of 134 safety observations were made in 2017.

Turku Energia is part of the Vision Zero (zero accidents) forum. The frequency of work-related accidents per million working hours in the Group was less than in the previous year, 18,4. The “Robust safety management” project and its various working groups have contributed to making management culture and attitudes more positive about safety.

Safe working practices among our suppliers and sub-contractors are also important for us. Turku Energia uses standard occupational safety documents which are observed in all network construction or maintenance jobs or other commissions between the company and its sub-contractors. The aim of the documents is to identify all safety factors related to a construction project so that they are taken into consideration when carrying out the work, and also establish occupational safety requirements for those carrying out the work. The sub-contractor makes sure that his staff are trained as required by the standard safety document and, if required, can provide certificates to demonstrate this. In addition, if required, Turku Energia will organise safety training specific for sub-contractors such as excavation work, operational work on networks and working close to electrical networks. Sub-contracting construction, operational and maintenance work is normally through a single, comprehensive procurement contract so the number of employee days required for sub-contracted work cannot be specified precisely.

Turku Energia’s occupational health committee assists the line organisation in taking measures and in planning related to occupational health in accordance with the annual occupational health plan and the occupational health committee’s action plan. The committee met five times in 2017. Among other issues, the meetings considered all of Turku Energia’s occupational accidents and near-misses.

Financial responsibility and interest groups

In addition to ensuring profitability, financial responsibility also includes investing in the well-being of staff, meeting the expectations of both customers as well as owners' expectations of investment returns. In relations with its interest groups Turku Energia follows a responsible business method and good practices linked with responsible entrepreneurial activities. A profitable operation also enables the long-term development of the operation, investments and investing in the well-being of staff and in the environment. The Turku Energia Group has a positive impact on the well-being of its region, through employment, paid wages, and the income taxes paid by its staff.

The average number of staff in 2017 was 286 (297). Total wages and salaries paid out by the Group in 2017 were EUR 13.4 million (2014: EUR 13.6 million). Over the next few years staff turnover will increase as the number of people retiring grows. Retirements will increase the need to reorganize roles, increase training and recruit new staff. The pension liability is covered in accordance with the Local Government Pensions Act.

The Turku Energia Group has almost 80 000 customers and over 180 000 households use the Group’s energy services. Revenues from the sale of goods and services to customers totalled EUR 254.7 million (2014: EUR 254.9 million) and connection fees totalled EUR 2.38 million (2014: EUR 1.3 million).

In 2017 the Turku Energia Group had about 480 suppliers of goods and services, with a significant proportion of them operating in the Group's area of operations. In 2017 purchases of materials and services were worth a combined EUR 234.3 million (2014: EUR 222.1 million). Most of the procurement, 76 per cent, related to energy.

The business activities of the Turku Energia Group are governed by legislation and good governance. In 2017 the Group paid EUR 3.4 million in taxes (2014: EUR 4.4 million). In addition, the Group’s operations have generated significant amounts of tax for society as well as payments such as VAT, withholding payments on employees’ earning and electricity taxes. Although these payments cannot be included within the aegis of Turku Energia Group’s social responsibility, the Group has ensured that society has received these payments on time and in full.

In 2017, Turku Energia paid dividends of EUR 18 million to its owner, the City of Turku, from its 2016 earnings. EUR 18 million in dividends is to be distributed in respect of 2017 earnings.

Support for culture, sporting activities, social projects and environmental projects last year was worth EUR 0.16 million (2014: EUR 0.2 million).

Reliable supplies of electricity and heat

Turku Energia’s primary task is to supply electricity and heat to its customers with no interruptions. The continuity of supply of electricity and heat transmission was excellent in 2015. The interruption in supply of electricity calculated per customer was 9 min 56 s (9 min 50 s). The reliability, quality, and safety of energy transmission is secured by ensuring the systematic maintenance, upgrading, and development of the networks. The Electricity Market Act imposes a duty on the owners of electricity networks to increase efforts both to improve the continuity of electricity transmission and to prepare for interruptions in supply.

The continuity of supply of district heat during 2015 was good, and no significant interruptions of production or distribution were experienced during the year. The average length of interruption per customer fell from the previous year to 51 minutes (2014: 64 min).

Turku Energia informs its customers about interruptions in electricity supply through the press, a duty-telephone service and through the internet. The address shows information about disturbances in the electricity network and their duration in real time. In addition, the service can be used to check past and planned interruptions in transmission. Turku Energia further developed communications about interruptions in supply. Customers now have the opportunity, for example, to request information about interruptions in supply to their region by text message to their phones.